Iron ore is used essentially in the steel-making process. Iron ore is the raw material used to make pig iron, which is one of the main raw materials used to make steel. Around 98% of the iron ore mined in the world is used to make steel.
Let’s face it. Markets, like men, have a one-track mind. Once the focus on one topic dies away, another topic is needed to fill the void.
In the middle of 2010, the market’s focus was on the European debt crisis. But once these concerns had receded, the market moved on to this year’s most exciting topic: rare earths.
When it comes to trading CFDs, there are three clear schools of thought. The first is those traders that have experimented with CFDs and have only a number of accounts that have been blown up to show for it. This is obviously the largest school.
With markets seemingly in turmoil, it’s always interesting and instructive to try to cut through the near-term hysteria and focus on the bigger picture as it relates to commodities.
The soft-commodity space has been overshadowed in recent months as precious metals stole the show. And, considering that soft commodities are up about 60% over the past 12 months, that’s quite an achievement.
Why the shiny stuff is stealing the spotlight
The first half of 2011 was a wild ride for traders in the commodity space, as MineLife founder Gavin Wendt explains
Gold is trading at all-time highs, while silver is still struggling down more than 20% from the top it reached in May.
For many traders, this makes no sense: they are both important precious metals and they usually trade in tandem. So what’s happening in the precious metals market?
Those who have been watching the mining space in Australia would know the name Julian Malnic, the brains behind the Toronto stock exchange-listed Nautilus Minerals Inc, which is set to start high-grade mining copper and zinc off the coast of Papua New Guinea in the next two to three years